Define 'co-payment'.

A co-payment, commonly referred to as a co-pay, is a fixed dollar amount that a patient is required to pay for specific healthcare services at the time of receiving those services. This system is used to share costs between the insurance company and the insured individual, helping to manage healthcare costs while encouraging appropriate use of medical services.

For example, if a patient visits a doctor, they might have a predetermined co-payment amount of $20, which they pay at the time of the visit, regardless of the total cost of the visit or the services provided. This structure differs from other types of payment arrangements, such as coinsurance, where a percentage of the total cost is paid by the insurance, or deductibles, which are the amounts patients must pay out-of-pocket before insurance coverage begins.

Overall, co-payments make it easier for patients to budget their healthcare expenses and create a straightforward transaction process when accessing services.